"They like to see American film production in India as well," Villaraigosa said. "That already is occurring, so we'd like to get Indian filmmakers to come here to Los Angeles."
It's a win-win situation for both film capitals.
"Apart from Bombay, this is really the center of gravity for world entertainment," said Bobby Bedi, an Indian film producer.
Hollywood is home to the most profitable studios in the world. Bollywood churns out about 1,000 movies a year.
For each industry, it means more money and jobs.
"We do rely on local talent a lot," Bedi said.
The new agreement should create new movie marriages like the one already in the works between DreamWorks and India's Reliance Industries. In that deal, about 15 movies are to be produced in Los Angeles.
Both industries have already been using the other country for their film backdrops. Parts of the fourth installment of the "Mission Impossible" series are being filmed in India.
Portions of the 2008 Bollywood blockbuster "My Name is Khan" were filmed in Los Angeles.
Film officials say it won't be long before Hollywood and Bollywood will be partnering up on a lot more ventures.